Key Term

What is Donor Acquisition?

Definition

Donor acquisition refers to the strategic process and activities undertaken by nonprofit organizations to identify, attract, and secure new donors who will provide financial support to their cause. This process involves various marketing, outreach, and relationship-building tactics designed to convert potential supporters into active donors, including direct mail campaigns, digital marketing, events, peer-to-peer fundraising, and personal solicitation.

Significance

Donor acquisition is fundamental to the sustainability and growth of nonprofit organizations as it ensures a continuous influx of new supporters to replace natural donor attrition and expand the funding base. It is particularly crucial because acquiring new donors helps organizations diversify their revenue streams, reduce dependency on existing donors, and build a broader community of supporters who can become long-term advocates for their cause. However, it's important to note that donor acquisition typically costs more than donor retention, making it essential for organizations to balance their investment in acquisition with strong retention strategies to maximize the lifetime value of each donor relationship.